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The ban has been imposed under section 7(4) of Food and Drug Adulteration (Prevention) Act, 1954, Chief Minister Vilas Deshmukh told a post-cabinet meeting press conference in Mumbai.
It prohibits the manufacture, storage, advertisements and sale of gutkha and pan masala (with or without tobacco), Deshmukh said.
The ban is to be effective from August one, 2002 and will be enforced for a period of five years, he said.
It would cause an annual loss of Rs 250 million (Rs 25 crore) to the state exchequer, he added.
A recent survey, conducted by the Indian Dental Association, which showed that 2 million (20 lakh) youths, including school and college students, were addicted to the two substances, influenced the government's decision, Deshmukh informed the mediapersons.
With this decision, Maharashtra joins states like Tamil Nadu, Kerala, Andhra Pradesh, Goa and Gujarat in banning tobacco addictives.
The state government would also write to the Centre seeking a nationwide ban on tobacco chewing products, Deshmukh said.
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